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AI-powered exoskeletons are helping paralyzed patients walk again — and could soon be coming to homes across the U.S.

AI-powered exoskeletons are helping paralyzed patients walk again — and could soon be coming to homes across the U.S.

New York Post31-07-2025
Inside the glass-ensconced Wandercraft storefront on Park Avenue South, Caroline Laubach recently rose from her wheelchair and walked.
'Every time I get up I remember how tall I really am,' Laubach, a 22-year-old from Pennsylvania, told NYNext.
At age 18, Laubach went into end-stage heart failure. For two weeks, she lingered on life support while doctors scrambled to find a donor. She ultimately had a successful heart transplant, but not before a spinal stroke left her paralyzed from the waist down.
10 Three years after a spinal stroke left her paralyzed, Caroline Laubach now walks weekly with the help of an exoskeleton from Wandercraft called Eve.
Emmy Park
She thought she would be confined to a wheelchair for the rest of her life, then she met Wandercraft's Atalante. During a therapy session in November 2024, she strapped on the exoskeleton for the first time. It was life-changing.
'To look at somebody from eye-level and have a connection with them in that way,' she said. 'It's a different dynamic.'
10 In December 2023, Wandercraft debuted its flagship U.S. space — a street-level showroom and clinic called Walk In New York.
Emmy Park
Founded in 2012, the French robotics and AI company Wandercraft launched its first model of Atalante in 2019. The device received FDA clearance for stroke rehabilitation two years later.
In December 2023, Wandercraft opened a headquarters and showroom in New York. It's betting that its exoskeletons can help redefine mobility for people with spinal cord injuries, strokes and other conditions affecting gait and balance.
'We are not just a technology [confined to] cool video demonstrations in the lab,' Matthieu Masselin, CEO and co-founder of Wandercraft, told NYNext. 'We are working with real people, real patients.'
10 'I was born completely healthy — as far as we knew,' Caroline Laubach (left) told NYNext's Lydia Moynihan (right). At 18, Laubach went into end-stage heart failure and spent two weeks on life support awaiting a transplant. During that time, she suffered a spinal stroke that left her paralyzed from the waist down.
Emmy Park
10 Laubach can control Eve with a handheld joystick, using buttons to walk forward, turn, squat and even bend side to side — all without assistance.
Emmy Park
Unlike other exoskeletons that require crutches, both Atalante and Wandercraft's newer model, Eve, are fully self-balancing. The former is designed specifically for physical therapy and requires the assistance of a clinician. The latter, now in clinical trials at the Bronx VA and Kessler Rehabilitation Center in New Jersey, can be fully controlled by the user and is built for personal use in home and real-world environments.
Wandercraft's exoskeletons are powered by multiple motors — two at the ankles, one at each knee and several at the hips — plus a suite of sensors that constantly track weight distribution. As the user shifts or moves, the system processes inputs in real time to maintain balance and posture.
10 While Atalante (right) is used in rehab centers under therapist supervision, Eve (left) is untethered, joystick-controlled and intended for everyday use outside the clinic.
Emmy Park
10 Masselin, who co-founded Wandercraft in 2012, left Paris and moved to New York about three years ago to help bring the company's vision to life in the U.S.
Emmy Park
From weight and height to balance and stride, every patient moves differently.
To ensure safety, Wandercraft has spent more than a decade refining its control algorithms and AI systems with collaborators like Nvidia and AWS. It's tested its hardware with more than 2,000 patients in hospitals and rehab centers.
10 French paraplegic tennis player Kevin Piette wore a Wandercraft exoskeleton while carrying the Olympic torch through Paris ahead of the 2024 Games.
Courtesy of Wandercraft
One prominent patient is French paraplegic tennis player Kevin Piette, who donned a Wandercraft exoskeleton to carry the Olympic torch towards Paris ahead of the 2024 Games.
'Emotionally, psychologically, physiologically … [we're seeing] the benefits on so many aspects of [the patients'] lives,' Masselin said.
10 Thanks to improved engineering and streamlined production, Wandercraft's exoskeletons are steadily becoming cheaper to produce — and a new partnership with the Renault Group, Masselin said, will drive costs down even further.
Emmy Park
Wandercraft devices are currently used in more than 100 institutions across Europe and America, and access is expanding.
The company recently received Medicare coding for Atalante, meaning qualifying patients will be reimbursed. When Eve hits the market,potentially as soon as next year, it will be eligible for reimbursement up to $93,000.
10 As part of its partnership with the Renault Group, Wandercraft has co-developed CALVIN-40 — a humanoid robot that can support manufacturing workflows.
Courtesy of Wandercraft
10 Masselin said that future iterations of the exoskeletons will be equipped for less even terrain and consistent surfaces like stairs and sand.
Emmy Park
To help scale, Wandercraft partnered with the Renault Group in June to streamline manufacturing and reduce costs. As part of the partnership, Wandercraft is also developing a new line of humanoid robots that can slot into the manufacturing process.
To Masselin, who relocated from Paris three years ago to lead US expansion, the future of the technology lies in its adaptation to broader environments — stairs, outdoor terrain, even beaches — and in building devices that respond to how people actually live.
This story is part of NYNext, an indispensable insider insight into the innovations, moonshots and political chess moves that matter most to NYC's power players (and those who aspire to be).
Laubach, for her part, hopes to be among the first to take Eve home once FDA clearance is granted.
'I hope we see a lot more exoskeletons out on the street,' she told NYNext, 'for people like me — and people very different from me.'
Send NYNext a tip: nynextlydia@nypost.com
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Tonix Pharmaceuticals Reports Second Quarter 2025 Financial Results and Operational Highlights
Tonix Pharmaceuticals Reports Second Quarter 2025 Financial Results and Operational Highlights

Yahoo

time3 hours ago

  • Yahoo

Tonix Pharmaceuticals Reports Second Quarter 2025 Financial Results and Operational Highlights

FDA PDUFA goal date of August 15, 2025, for TNX‑102 SL for fibromyalgia: if approved by FDA, TNX‑102 SL would be the first new drug for fibromyalgia in more than 16 years In June 2025, the Company was added to the Russell 3000® and Russell 2000® Indexes following the annual reconstitution Phase 3 RESILIENT results published in peer-reviewed journal, Pain Medicine, including statistically significant reduction in fibromyalgia pain with once‑nightly TNX‑102 SL; generally well tolerated Cash and cash equivalents of $125.3 million reported as of June 30, 2025; current cash runway expected to fund operations into the third quarter of 2026 CHATHAM, N.J., Aug. 11, 2025 (GLOBE NEWSWIRE) -- Tonix Pharmaceuticals Holding Corp. (Nasdaq: TNXP) ('Tonix' or the 'Company'), a fully-integrated biotechnology company with marketed products and a pipeline of development candidates, today announced financial results for the second quarter ended June 30, 2025, and provided an overview of recent operational highlights. 'With the U.S. Food and Drug Administration (FDA) Prescription Drug User Fee Act (PDUFA) goal date of August 15, for TNX-102 SL (cyclobenzaprine HCl sublingual tablets) for fibromyalgia, we are excited about the potential to make this important new therapy available to patients in the fourth quarter of this year,' said Seth Lederman, M.D., Chief Executive Officer of Tonix Pharmaceuticals. 'FDA considers fibromyalgia a serious condition and awarded TNX-102 SL Fast Track designation last year. There has been no new treatment for this debilitating condition approved in over 16 years. Additionally, our RESILIENT Phase 3 study results were recently published in the peer-reviewed journal, Pain Medicine.' Dr. Lederman continued, 'Our pipeline momentum remains strong. In the second quarter, we dosed the first patient in the U.S. Department of Defense (DoD)-funded, investigator-initiated, OASIS trial of TNX-102 SL for acute stress reaction. We also presented new data for our live-virus vaccine, TNX-801, which demonstrated durable single-dose protection against mpox and rabbitpox in animal models. We previously reported positive Phase 1 safety and pharmacokinetic data for TNX-1500, advancing this next-generation anti-CD40L antibody toward a Phase 2 kidney-transplant study. We are well-positioned to translate these milestones into meaningful value for patients and shareholders alike.' Key Investigational Product Candidates TNX-102 SL (cyclobenzaprine HCl sublingual tablets 2.8 mg): two tablets (5.6 mg), once-daily at bedtime for fibromyalgia (FM) – a centrally-acting, non-opioid analgesic. In June 2025, Tonix presented a poster at the European Congress of Rheumatology (EULAR 2025) demonstrating that TNX‑102 SL produced statistically significant, durable (14‑week) pain reduction across two Phase 3 trials. In July 2025, Tonix announced online publication of full results from the confirmatory Phase 3 RESILIENT trial of TNX‑102 SL in the peer-reviewed journal Pain Medicine, showing once‑nightly 5.6 mg achieved a statistically significant reduction in fibromyalgia pain versus placebo and was well tolerated; the data confirm the earlier RELIEF study and support the ongoing New Drug Application (NDA) review with an August 15, 2025 PDUFA goal date. TNX-102 SL in development for the treatment of acute stress reaction (ASR) and acute stress disorder (ASD), and prophylaxis against development of posttraumatic stress disorder (PTSD) In May 2025, the first patient was dosed in the Phase 2 investigator initiated OASIS trial evaluating a two week course of TNX102 SL 5.6 mg to reduce the severity of acute stress reaction (ASR) and the frequency of acute stress disorder (ASD); the study is sponsored by the University of North Carolina and supported by a $3 million U.S. Department of Defense grant, with topline results expected in the second half of 2026. Immunology Pipeline TNX-1500 (anti-CD40L Fc-modified humanized monoclonal antibody): third generation anti-CD40L monoclonal antibody under investigation for prophylaxis for organ transplant rejection and treatment of autoimmune disorders In May 2025, Tonix reported positive topline data from a Phase 1 single‑ascending‑dose study in healthy volunteers: TNX‑1500 met all safety, pharmacokinetic and pharmacodynamic goals, blocked primary and secondary antibody responses at 10 mg/kg and 30 mg/kg doses with intravenous (i.v.) administration, and showed a 34–38‑day mean half‑life that supports monthly i.v. dosing—supporting the path for a planned Phase 2 study to evaluate TNX-1500 for prevention of rejection in kidney allogeneic transplant. TNX-801 (recombinant horsepox virus, minimally replicative live-virus vaccine): potential vaccine to protect against mpox and smallpox. In April 2025, Tonix presented new preclinical data on TNX-801 at the World Vaccine Congress Washington 2025 showing a single subcutaneous (s.c.) dose protected animals from mpox and rabbitpox for at least six months, remained well tolerated even in immunocompromised models, and met key attributes in the WHO's preferred target product profile for mpox vaccines. Corporate and Partnerships In May 2025, Tonix appointed Joseph Hand, Esq. as General Counsel and Executive Vice President of Operations, adding more than two decades of legal and operational expertise as the Company prepares for potential TNX‑102 SL commercialization. In June 2025, Tonix announced that commercial veteran James Hunter joined its Board of Directors, bringing forty years of go‑to‑market experience to strengthen strategy and governance ahead of the expected TNX‑102 SL launch. In June 2025, the Company was added to the Russell 3000® and Russell 2000® Indexes following the annual reconstitution, broadening visibility among institutional investors as Tonix approaches key regulatory milestones. Financials As of June 30, 2025, Tonix had $125.3 million in cash and cash equivalents, compared with $98.8 million as of December 31, 2024. Net cash used in operations was approximately $31.4 million for the six months ended June 30, 2025, compared to $27.5 million for the same period in 2024. The Company believes that, based on its current operating plan, its cash on hand at June 30, 2025, together with $51.5 million in net proceeds received from equity offerings during the third quarter 2025, will fund planned operating and capital expenditures into the third quarter of 2026. Second Quarter 2025 Financial Results Net product revenue for the three months ended June 30, 2025 was approximately $2.0 million, compared to $2.2 million for the same period in 2024; revenue again reflected combined net sales of Zembrace® SymTouch® and Tosymra®. Cost of sales for the three months ended June 30, 2025 was approximately $3.3 million, compared to $3.4 million for the same period in 2024. Research and development expenses for the three months ended June 30, 2025 were $10.8 million, compared to $9.7 million for the same period in 2024. The increase was predominately due to increased clinical expenses, nonclinical expenses and manufacturing expenses, reflecting spend on pipeline priorities. Selling, general and administrative expenses for the three months ended June 30, 2025 were $16.2 million, compared to $7.5 million in 2024. The increase is predominately due to spend on sales and marketing to progress pre-launch activities related to the potential FDA approval of TNX-102 SL for fibromyalgia. Net loss available to common stockholders was $28.3 million, or $3.86 per share (basic and diluted), for the second quarter 2025, compared to a net loss of $78.8 million, or $1,920.85 per share, for the same period in 2024. The basic and diluted weighted-average common shares outstanding for the second quarter 2025 were 7,327,257 compared to 41,011 for the same period in 2024. Tonix Pharmaceuticals Holding Corp.*Tonix is a fully-integrated biotechnology company focused on transforming therapies for pain management and vaccines for public health challenges. Tonix's development portfolio is focused on central nervous system (CNS) disorders. Tonix's priority is to advance TNX-102 SL, a product candidate for fibromyalgia, for which an NDA was submitted based on two statistically significant Phase 3 studies for fibromyalgia and for which a PDUFA goal date of August 15, 2025 has been assigned for a decision on marketing authorization. The FDA had also granted Fast Track designation to TNX-102 SL for fibromyalgia. TNX-102 SL is also being developed to treat acute stress reaction and acute stress disorder under a Physician-Initiated IND at the University of North Carolina in the OASIS study funded by the U.S. Department of Defense (DoD). Tonix's immunology development portfolio consists of biologics to address organ transplant rejection, autoimmunity and cancer, including TNX-1500, which is an Fc-modified humanized monoclonal antibody targeting CD40-ligand (CD40L or CD154) being developed for the prevention of allograft rejection and for the treatment of autoimmune diseases. Tonix's infectious disease portfolio includes TNX-801, a vaccine in development for mpox and smallpox, as well as TNX-4200 for which Tonix has a contract with the U.S. DoD's Defense Threat Reduction Agency (DTRA) for up to $34 million over five years. TNX-4200 is a small molecule broad-spectrum antiviral agent targeting CD45 for the prevention or treatment of infections to improve the medical readiness of military personnel in biological threat environments. Tonix owns and operates a state-of-the art infectious disease research facility in Frederick, Md. Tonix Medicines, our commercial subsidiary, markets Zembrace® SymTouch® (sumatriptan injection) 3 mg and Tosymra® (sumatriptan nasal spray) 10 mg for the treatment of acute migraine with or without aura in adults. * Tonix's product development candidates are investigational new drugs or biologics; their efficacy and safety have not been established and have not been approved for any indication. Zembrace SymTouch and Tosymra are registered trademarks of Tonix Medicines. All other marks are property of their respective owners. This press release and further information about Tonix can be found at Forward Looking StatementsCertain statements in this press release are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of forward-looking words such as 'anticipate,' 'believe,' 'forecast,' 'estimate,' 'expect,' and 'intend,' among others. These forward-looking statements are based on Tonix's current expectations and actual results could differ materially. There are a number of factors that could cause actual events to differ materially from those indicated by such forward-looking statements. These factors include, but are not limited to, risks related to the failure to obtain FDA clearances or approvals and noncompliance with FDA regulations; risks related to the failure to successfully market any of our products; risks related to the timing and progress of clinical development of our product candidates; our need for additional financing; uncertainties of patent protection and litigation; uncertainties of government or third party payor reimbursement; limited research and development efforts and dependence upon third parties; and substantial competition. As with any pharmaceutical under development, there are significant risks in the development, regulatory approval and commercialization of new products. Tonix does not undertake an obligation to update or revise any forward-looking statement. Investors should read the risk factors set forth in the Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the Securities and Exchange Commission (the 'SEC') on March 18, 2025, and periodic reports filed with the SEC on or after the date thereof. All of Tonix's forward-looking statements are expressly qualified by all such risk factors and other cautionary statements. The information set forth herein speaks only as of the date thereof. TONIX PHARMACEUTICALS HOLDING CORP. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars In Thousands Except Per Share Amounts) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 REVENUE: Product revenues, net $ 1,998 $ 2,208 $ 4,427 $ 4,690 COSTS AND EXPENSES: Cost of sales 3,272 3,367 4,215 5,027 Research and development 10,820 9,698 18,256 22,561 General and administrative 16,202 7,502 26,306 16,812 Asset impairment charges - 58,957 - 58,957 Total operating expenses 30,294 79,524 48,777 103,357 Operating Loss (28,296 ) (77,316 ) (44,350 ) (98,667 ) Grant income 1,036 - 1,959 - (Loss) gain on change in fair value of warrant liabilities - (855 ) - 6,150 Loss on Extinguishment - - (2,092 ) - Interest income, net 943 - 1,571 - Other expense, net (1,955 ) (605 ) (2,189 ) (1,198 ) Net loss available to common stockholders $ (28,272 ) $ (78,776 ) $ (45,101 ) $ (93,715 ) Net loss per common share, basic and diluted $ (3.86 ) $ (1,920.84 ) $ (6.80 ) $ (2,720.43 ) Weighted average common shares outstanding, basic and diluted 7,327,257 41,011 6,631,111 34,449 TONIX PHARMACEUTICALS HOLDING CONSOLIDATED BALANCE SHEETS(In Thousands)(Unaudited) June 30, 2025 December 31,20241 Assets Cash and cash equivalents $ 125,331 $ 98,776 Accounts receivable, net 2,320 3,683 Inventory 5,986 8,408 Prepaid expenses and other 9,898 8,135 Total current assets 143,535 119,002 Other non-current assets 43,824 43,888 Total assets $ 187,359 $ 162,890 Liabilities and stockholders' equity Total liabilities $ 19,358 $ 23,332 Stockholders' equity 168,001 139,558 Total liabilities and stockholders' equity $ 187,359 $ 162,890 1The condensed consolidated balance sheet for the year ended December 31, 2024 has been derived from the audited financial statements but do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. Investor ContactJessica MorrisTonix 799-8599 Brian Korb astr partners (917) 653-5122 Media ContactRay JordanPutnam Insightsray@ 245-5432 Indication and Usage Zembrace® SymTouch® (sumatriptan succinate) injection (Zembrace) and Tosymra® (sumatriptan) nasal spray are prescription medicines used to treat acute migraine headaches with or without aura in adults who have been diagnosed with migraine. Zembrace and Tosymra are not used to prevent migraines. It is not known if Zembrace or Tosymra are safe and effective in children under 18 years of age. Important Safety Information Zembrace and Tosymra can cause serious side effects, including heart attack and other heart problems, which may lead to death. Stop use and get emergency help if you have any signs of a heart attack: discomfort in the center of your chest that lasts for more than a few minutes or goes away and comes back severe tightness, pain, pressure, or heaviness in your chest, throat, neck, or jaw pain or discomfort in your arms, back, neck, jaw or stomach shortness of breath with or without chest discomfort breaking out in a cold sweat nausea or vomiting feeling lightheaded Zembrace and Tosymra are not for people with risk factors for heart disease (high blood pressure or cholesterol, smoking, overweight, diabetes, family history of heart disease) unless a heart exam shows no problem. Do not use Zembrace or Tosymra if you have: history of heart problems narrowing of blood vessels to your legs, arms, stomach, or kidney (peripheral vascular disease) uncontrolled high blood pressure hemiplegic or basilar migraines. If you are not sure if you have these, ask your provider. had a stroke, transient ischemic attacks (TIAs), or problems with blood circulation severe liver problems taken any of the following medicines in the last 24 hours: almotriptan, eletriptan, frovatriptan, naratriptan, rizatriptan, ergotamines, or dihydroergotamine. Ask your provider for a list of these medicines if you are not sure. are taking certain antidepressants, known as monoamine oxidase (MAO)-A inhibitors or it has been 2 weeks or less since you stopped taking a MAO-A inhibitor. Ask your provider for a list of these medicines if you are not sure. an allergy to sumatriptan or any of the components of Zembrace or Tosymra Tell your provider about all of your medical conditions and medicines you take, including vitamins and supplements. Zembrace and Tosymra can cause dizziness, weakness, or drowsiness. If so, do not drive a car, use machinery, or do anything where you need to be alert. Zembrace and Tosymra may cause serious side effects including: changes in color or sensation in your fingers and toes sudden or severe stomach pain, stomach pain after meals, weight loss, nausea or vomiting, constipation or diarrhea, bloody diarrhea, fever cramping and pain in your legs or hips; feeling of heaviness or tightness in your leg muscles; burning or aching pain in your feet or toes while resting; numbness, tingling, or weakness in your legs; cold feeling or color changes in one or both legs or feet increased blood pressure including a sudden severe increase even if you have no history of high blood pressure medication overuse headaches from using migraine medicine for 10 or more days each month. If your headaches get worse, call your provider. serotonin syndrome, a rare but serious problem that can happen in people using Zembrace or Tosymra, especially when used with anti-depressant medicines called SSRIs or SNRIs. Call your provider right away if you have: mental changes such as seeing things that are not there (hallucinations), agitation, or coma; fast heartbeat; changes in blood pressure; high body temperature; tight muscles; or trouble walking. hives (itchy bumps); swelling of your tongue, mouth, or throat seizures even in people who have never had seizures before The most common side effects of Zembrace and Tosymra include: pain and redness at injection site (Zembrace only); tingling or numbness in your fingers or toes; dizziness; warm, hot, burning feeling to your face (flushing); discomfort or stiffness in your neck; feeling weak, drowsy, or tired; application site (nasal) reactions (Tosymra only) and throat irritation (Tosymra only). Tell your provider if you have any side effect that bothers you or does not go away. These are not all the possible side effects of Zembrace and Tosymra. For more information, ask your provider. This is the most important information to know about Zembrace and Tosymra but is not comprehensive. For more information, talk to your provider and read the Patient Information and Instructions for Use. You can also visit or call 1-888-869-7633. You are encouraged to report adverse effects of prescription drugs to the FDA. Visit or call in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Why Young Children May Not Get Covid Shots This Fall
Why Young Children May Not Get Covid Shots This Fall

New York Times

time3 hours ago

  • New York Times

Why Young Children May Not Get Covid Shots This Fall

This fall, it may not be possible for many parents to have a healthy child under age 5 immunized against Covid. Pfizer's vaccine has long been available to these children under so-called emergency use authorization. But the Food and Drug Administration is considering discontinuing the authorization for that age group, according to an email sent by the Centers for Disease Control and Prevention to state and local health departments. Pfizer confirmed the possibility on Monday evening and said that the company was 'currently in discussions with the agency on potential paths forward.' For children 5 to 11 years old, the Pfizer vaccine is expected to be approved and available, according to the C.D.C.'s email, which was reviewed by The New York Times. In July, the F.D.A. granted full approval to Moderna's Covid vaccine for children — but only for those who have health conditions that may put them at increased risk should they become infected. Novavax's Covid vaccine has never been available for children under 12. The upshot is that if the F.D.A. does not renew Pfizer's authorization for children 6 months to 4 years, or fully approve the vaccine, healthy children in that age group will have no officially sanctioned options — although doctors may still choose to provide the vaccine 'off label.' That the F.D.A. might rescind the authorization was first reported by The Guardian. 'Unfortunately, this leaves one of the vulnerable groups, specifically healthy children less than 2 years old, without access to a safe vaccine that's known to prevent hospitalization and death,' said Dr. Lakshmi Panagiotakopoulos, who oversaw the C.D.C.'s work group on the Covid vaccine before she resigned in June. Want all of The Times? Subscribe.

European defense giants could be about to get another big push higher, Bank of America says
European defense giants could be about to get another big push higher, Bank of America says

CNBC

time4 hours ago

  • CNBC

European defense giants could be about to get another big push higher, Bank of America says

European defense stocks could be set for another big tailwind, according to an analyst who says the sector is about to see a surge in demand from one particular pocket of the market. Speaking to CNBC's "Squawk Box Europe" on Thursday, Ben Heelan, Bank of America's head of EU industrials research, said his team expects European long-only investors are yet to buy into the defense space. Many ESG funds, which have historically swerved defense investments, appear to have shifted their stance on the sector amid rising geopolitical instability and commitments from Western governments to grow their security budgets. Heelan pointed to this trend as a potential driver of more growth among already booming defense names. "I think what we've seen actually is, if you speak to some of these investors that had previously been restricted, they're no longer restricted, but in order to be able to buy those assets within their funds, they need to update all the fund documents," he explained. "They need to notify their clients what they're planning on doing. So we actually did some benchmarking of the flow situation a couple of weeks ago with our team here. And actually, we don't think that the weighting for ESG funds in Europe has actually shifted that much, which I think is very interesting — we do feel as though a lot of that re-weighting of the European ESG asset basis is still to come." European defense stocks have had a year of blockbuster growth, amid commitments from regional governments and the NATO military alliance — whose members are largely European nations — to drastically ramp up defense spending. The Stoxx Europe Aerospace and Defense index has gained 50% since the beginning of 2025, with the top performers seeing their valuations swell dramatically. Shares of French maritime robotics firm Exail Technologies , for example, have surged 581% over the course of the year. Meanwhile, German defense contractors Renk , Rheinmetall and Hensoldt are up 235%, 164% and 147%, respectively. EXA-FR RHM-DE,R3NK-FF,HAG0-FF YTD line European defense stocks However, regional defense stocks have been selling off over the past three sessions, as a planned meeting between U.S. President Donald Trump and his Russian counterpart Vladimir Putin raised hopes of an end to the Ukraine war. "The reality is, you've seen a lot of hedge funds [and] macro funds being involved in these names. What we've seen over the past month has been a lot of de-grossing. So, some funds have just made a lot of money in the first six months," Bank of America's Heelan told CNBC on Thursday. He added that many defense stocks had recorded massive gains simply on expectations of big orders coming through from regional governments, and suggested that the materialization of those orders may help support the growth story. "The orders in Germany, they're really going to start hitting the backlogs of companies," he said. "So we're in this period where we have very, very high valuations in the short term, because we're expecting this significant trajectory of growth through to the end of this decade."

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